Neighbour selling house to child at below market price

DPJames

Have you tried minding your own business?

BitterAndTwisted

Have you tried staying on-topic?

pelirocco

PasturesNew wrote: »

Ah, re-mortgage. Didn't spot that bit.

I come from the generation that got a mortgage ..... and didn't keep remortgaging.

To be fair , a lot of people remortgage when their current deals run out

brit1234

3mu wrote: »

I am concerned that the land registry figures for the road will now show this much lower price, this will be used by a surveyor and therefore the value of other houses and my LTV will change for the worse when I need to remortgage in a year or two. Were I to sell then the potential buyer would use this lower price to negotiate down on a sale.

Yes surveyors use recent land registry values for valuations. There is nothing you can do amount this. It was the same situation during the boom when builders use to rig the whole area upwards by use of gift deposits on newbuilds.

If you are worried buy more equity in you home.

PasturesNew

pelirocco wrote: »

To be fair , a lot of people remortgage when their current deals run out

Yeah, but it didn't used to be a "deal" world. Most people used to get a variable rate mortgage. These fixed mortgages used to cost a lot more, so weren't popular.

Raggs_2

One other point is that whilst the property may be getting sold in terms of actual cash below value, it may well be that this is acting as a gifted deposit from parents (accepted by quite a few mortgage lenders). So the sale will go down as the mortgage company valuation, with the difference in price acting as the deposit. Most likely scenario in my mind...

Possibly doing something similar myself in the future, hence read up a bit on it.

Orpheo

There is no such thing as below market price.

JonnyBravo

Orpheo wrote: »

There is no such thing as below market price.

Of course there is.
If the house was placed on the open market and would have sold for £150k but theyre selling it for £100k that is below market price.

If the Govt sold all our remaining gold for £100 to Dave's brother* would that be below market value or is there still no such thing?

* If he has a brother

Running_Horse

DPJames wrote: »

Have you tried minding your own business?

BitterAndTwisted wrote: »

Have you tried staying on-topic?

It is spot on topic. The amount of tax someone is forced to pay should be nobody else's business, and not be published on a government website for nosy neighbours to pry. Would you like your income tax returns to be publicised? They bought the house and (within the law) can do what the hell they like with it. Just hope I can do the same for my child one day, without Hilda Curtain-Twitcher from down the road sticking her oar in.

michaels

Hmm - is it no one else's business? The price could be artificially reduced to avoid stamp duty which sounds immoral to me even if not illegal - similarly divesting off assets can bring entitlement to benefits (like care home fees mentioned above) that having the asset at its correct valuation would disqualify.

I would have said tax evasion and benefits fraud are everyone's business.